Google, Dell and the gPhone
So the latest scuttlebutt is that Google and Dell are getting together and bashing out the first Android phone. Turns out to have been just that - a rumor.
Nevertheless I think there’re interesting reasons why this could be a real thing - perhaps something that’s in the works that isn’t ready for announcing time.
1) Google already works with Dell
So, Google already has some relationship with Dell and one can assume that they’re happy together. So dealing with the devil you know may be appealing to the G. There’s a lot to be said for good, existing relations.
2) Dell has PDA experience already
Although it’s exited the PDA market, Dell’s got some chops building PDAs. Now I don’t know a from b, but I’d guess that at this point building a featurey phone is a lot more like building a PDA than a phone. Which is to say adding a phone to a PDA is probably an easier way to approach vs. adding a PDA to a phone.
3) Google has to be sweating a recession
With all the talk over the past many months of the possibility of a recession, Google has to be worried about its revenue. Right now it’s completely tied to advertising and that isn’t growing the way it used to. So they’ve gotta be looking for ways to get some growth going again especially if there’s an economic crunch and ad spending goes down. A successful Android launch could put the magic back into the story, they need it done, done right and done fast. That means they can’t wait for the Alliance to get off its collective ass. Plus, it can’t hurt to have the first phone be branded to you as opposed to a generic alliance.
4) Dell’s already reached the bottom
As Scott says, Dell already won the race to the bottom (in terms of pricing) only to find itself with tiny margins, stiff competition and nowhere to go. It’s begun turning itself around, but has to be looking for something to help it out. Just like Google, a successful gPhone could be the magic it needs.
Everyone’s watching the success of the iPhone - every month it entrenches itself more. Every month, more people are locking themselves into 2 year contracts with AT&T. With the SDK out in February, the buzz and developer community (assuming the SDK is reasonably available) around the phone is set for even more growth. Android needs to happen fast. So I don’t know… I can see Google wanting to get moving on it already. Y’know? Is that just the crack talking?
